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flag Japan's major unions demand wage hikes up to 6.46% in 2026 amid inflation and labor shortages.

flag Japan's largest labor union, Rengo, is seeking a 5.94% average wage increase for 2026, driven by inflation and labor shortages, slightly below last year’s demand but still above its 5% target. flag A separate union group, UA Zensen, is pushing for a record 6.46% raise, while part-time workers seek 7.76%. flag Over 63% of surveyed firms plan wage hikes, mainly to retain staff. flag Despite last year’s 5.25% increase—the largest in 34 years—real wages fell due to inflation. flag Policymakers hope rising pay this year, aided by slowing food inflation, will support the Bank of Japan’s push to normalize monetary policy.

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